Costs must be cut so much that Tesla can build a smaller version of the Model Y 20 percent cheaper than now, insider sources say.
According to sources close to the car brand, Tesla is planning to build a new version of the Model Y.
The car will be 20 percent cheaper than the current car, according to the sources cited by Reuters. This also means it will be slightly smaller, the sources say.
The Reuters news agency has published information indicating that Tesla will develop a version of the Model Y that is significantly cheaper to produce, and which should therefore also be able to be sold cheaper than now.
The new and cheaper Model Y will primarily be sold in China. The plan is that the new version of the Model Y will also be produced in the US and Europe, where it will eventually be sold.
However, the news agency cannot give a more specific time frame for sales outside of China. According to Reuters, Tesla will start production as early as 2026.
Cheaper Model Y could double production in the US
Tesla has not commented on the information. But something could indicate that Tesla needs something new to save sales. Something that in Denmark fell by a whopping 58 percent in February.
Furthermore, the sharp drop in Tesla's share price since December last year may have pushed plans for a cheaper – and smaller – Model Y further forward.
In a comment to Boosted, the Danish automotive industry analyst says that there is little to indicate that a completely new Model 2 is on the way. However, he does not rule out that a cheaper Model Y is on the way.
Due to Tesla's silence, it is also not known whether it was a cheaper Model Y that Elon Musk was referring to when he made it clear this week that the brand will double its production in the US. Read more about it here .
